The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But in contrast you can make much more than 100% if the company does well. To wit, the Life360, Inc. (ASX:360) share price has flown 167% in the last three years. That sort of return is as solid as granite. It's even up 3.8% in the last week. But this could be related to the buoyant market which is up about 2.0% in a week.

Since it's been a strong week for Life360 shareholders, let's have a look at trend of the longer term fundamentals.

View our latest analysis for Life360

Life360 isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Life360's revenue trended up 45% each year over three years. That's well above most pre-profit companies. Meanwhile, the share price performance has been pretty solid at 39% compound over three years. This suggests the market has recognized the progress the business has made, at least to a significant degree. That's not to say we think the share price is too high. In fact, it might be worth keeping an eye on this one.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

Life360 shareholders are down 8.3% for the year, falling short of the market return. The market shed around 0.06%, no doubt weighing on the stock price. Fortunately the longer term story is brighter, with total returns averaging about 39% per year over three years. The recent sell-off could be an opportunity if the business remains sound, so it may be worth checking the fundamental data for signs of a long-term growth trend. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 1 warning sign for Life360 that you should be aware of before investing here.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges.